HomeMy WebLinkAboutResolutions - 1978.02.02 - 12664February 2, 1978
RESOLUTION NO, 8315
BY: FINANCE COMMITTEE
RE: AUTHORIZATION TO BORROW AGAINST ANTICIPATED DELINQUENT 1977 TAXES
TO: OAKLAND COUNTY BOARD OF COMMISSIONERS
MR. CHAIRMAN, LADIES & GENTLEMEN:
WHEREAS, on March 1, 1973, this Board of Commissioners adopted a
resolution establishing the Oakland County Delinquent Tax Revolving Fund,
pursuant to Section 87b of Act No. 206 of the Public Acts of 1893, as amended;
and
WHEREAS, This Fund has been designated as the "100% Tax Payment
Fund' by the Oakland County Treasurer, and it appears desirable to borrow
to fund part of said Fund for the 1977 delinquent taxes; and
WHEREAS, the purpose of this Fund is to allow the Oakland County
Treasurer (Hereinafter sometimes referred to as the "County Treasurer" or
the "Treasurer") to pay from the Fund any or all delinquent taxes which are
due the County; any school district; intermediate school district; community
college district; city, township, special assessment or drain district; or
any other political unit or county agency for which delinquent tax payments
are due on settlement day with the county, city or township treasurer and
has been heretofore directed to do so by this Board of Commissioners; and
WHEREAS, it is hereby determined that is is necessary that Oakland
County (hereinafter sometimes referred to as the ("County") borrow a sum not
to exeed Twenty Nine Million Dollars ($29,000,000.) and issue its notes in
anticipation of the 1977 delinquent real property taxes which become delinquent
on or before March 1, 1978 and deposit the proceeds thereof in the aforesaid
Fund; and
WHEREAS, such borrowing is authorized by Section 87e of Act No
206 of the Public Acts of 1893, as amended (hereinafter referred to as
"Act 206"); and
WHEREAS, the total amount of unpaid 1977 taxes which will be
outstanding on March 1, 1978 is estimated to be in excess of $29,000,000,
exclusive of interest, fees and penalties.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS
OF THE COUNTY OF OAKLAND as follows:
1. The County shall borrow Twenty Nine Million Dollars
($29,000,000.) or such part thereof as will represent not to exceed the
exact amount of the 1977 delinquent taxes outstanding on March 1, 1978,
exclusive of interest, fees and penalties and, as the Municipal Finance
Commission may authorize, issue its "General Obligation Tax Notes, Series
1978", payable from the collection of the 1977 delinquent taxes outstanding
on March 1, 1978, as specified above, the proceeds of which notes shall be
placed in and used as the whole or part of the County's 100% Tax Payment
Fund Account No. 46195, to be used as provided in Act 206.
2. The said notes shall bear interest payable November 1, 1978
May 1, 1979 and each November and May I thereafter until maturity, which
interest is not to exceed eight and three-quarters per cent ( 8 3/4%) per
annum. Said notes shall be coupon notes issued in denominations of $5,000
and shall be numbered from 1 upwards, beginning with their earliest maturities
in the direct order of their maturities. The notes shall be dated April 1,
1978 and shall be due and payable as follows: $9,000,000. on May 1, 1979;
$9,000,000. on May 1, 1980, and not to exceed $11,000,000. on May 1, 1981.
3. There is hereby established the County's 100% Tax Payment
Fund Collection Account No. 46195 (hereinafter referred to as the "Collection
Account"), effective as of March 1, 1978, into which Fund the County Treasurer
is hereby directed to place on the books and records all payments received
on account of the 1977 delinquent taxes as returned by any tax collector in
the County, and from which Fund the County Treasurer shall repay the borrowing,
using the receipts of the 1977 delinquent taxes, including interest, outstanding
and unpaid on March 1, 1978.
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4. All collections of the aforesaid 1977 delinquent taxes,
together with all interest thereon, are hereby pledged to the prompt payment
of the principal of and interest on the aforesaid notes; the proceeds of the
1977 delinquent taxes so pledged shall be used for no other purpose until the
notes are paid in full, including interest; and all such delinquent taxes so
pledged, together with all interest thereon, shall be deposited into and
accounted for separately in the Collection Account.
5. The notes shall be full faith and credit obligations of the
County, and if the proceeds of the said 1977 delinquent taxes pledged and
other moneys in the Collection Account for the year 1977 are not sufficient
to pay the principal and interest on the notes when due, the County shall
impose a general ad valorem tax without limitation as to rate or amount on
all taxable property in the County to pay the principal and interest on said
notes and may thereafter reimburse itself from delinquent taxes collected.
6. The County Treasurer, pursuant to Section 87c, subsection 3,
of Act 206 is hereby designated as Agent for the County, and the County
Treasurer and the Treasurer's office shall respectively receive such sums
as are therein provided for the services as agent for the County, and to
cover administrative expenses.
7. The County Treasurer shall use the proceeds of the borrowing
to establish and continue the County's 100% Tax Payment Fund and shall pay
therefrom the full amount of 1977 delinquent taxes delivered by any tax
collector in the County which are outstanding and unpaid on or after March 1,
1978, as required by Act 206, together with the expenses of this borrowing.
8. After a sufficient sum has been set aside for the purpose of
paying the aforesaid notes, any further collection of the aforesaid 1977
delinquent taxes may be used to pay any or all delinquent taxes which are
due and payable to the County; any school district; intermediate school
district; community college district; city, township, special assessment or
drain district; or any other political unit for which delinquent tax payments
other than for the year 1977 are due on settlement day with the county, city
or township treasurers.
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9. The notes of each maturity shall be payable to bearer in
lawful money of the United States of America at such bank or trust company in
the State of Michigan as shall be designated by the original purchaser or
purchasers and the notes and coupons shall be substantially in the form
attached hereto and hereby approved and adopted. A co-paying agency located
either in Michigan or elsewhere in the United States of America may also be
designated by such purchaser. The Treasurer shall have the right to approve
such paying agent or agents as set forth in the Notice of Sale attached hereto.
10. The notes shall not be subject to redemption prior to maturity.
11. The County Treasurer is hereby authorized and directed to
execute the notes for the County. The Treasurer is thereafter authorized and
directed to deliver the notes to the purchaser upon receipt of the purchase
price, which delivery may be made at the discretion of the Treasurer at one .
time or in parts at various times, provided that the notes with the earliest
maturities shall be all delivered prior to any notes with later maturities,
and provided further that all deliveries shall be completed by August 15, 1978.
The coupons affixed to the notes shall be executed with the facsimile signature
of the County Treasurer, and the notes shall be sealed with the county seal.
12. The County Treasurer be, and is hereby, authorized to make
application to the Municipal Finance Commission for the County for an order
permitting this County to borrow not to exceed $29,000,000. and issue its
General Obligation Tax Notes, Series 1978
13. The County Treasurer shall conduct a public sale of the notes
(after insertion of the Notice attached to this resolution and as provided in
paragraph 14 hereof), provided such notes shall not be sold at a discount,
after which sale the Treasurer shall award the notes to the lowest bidder.
The conditions of sale shall be as specified in said Notice,
14. Sealed proposals for the purchase of the notes shall be
received up to such time as shall later be determined and notice thereof shall
be published in accordance with law once in the Bond Buyer, which is hereby
designated as being a publication printed in the English language and circulated
in this State, which carries as a part of its regular service notices of sale
of municipal bonds. The Notice shall be in substantially the form in the
attachment to this resolution.
15. The Notes shall be delivered with the unqualified opinion of
Dickinson, Wright, McKean, Cudlip & Moon, Attorneys of Detroit, Michigan,
approving the legality of the notes, and the cost of said legal opinion and
the printing of the notes will be at the expense of the County. The notes
will be delivered at the expense of the County in such city or cities
designated by the Treasurer in the Notice of Sale.
The Finance Committee by Paul E. Kasper, Chairman, Moves the
adoption of the foregoing resolution.
FINANCE COMMITTEE
;)
A
kaspler, Chairman
STATE OF MICHIGAN
)SS:
COUNTY OF OAKLAND
1, the undersigned, the duly qualified and acting Clerk of the Board of
Commissioners of the County of Oakland, Michigan, do hereby certify that the
foregoing is 'a true and complete copy of proceedings taken at a
meeting of the Board of Commissioners of said County, held on the day of
, 1978, insofar as the same relate to the borrowing of not to
exceed $ and the issuance of the Oakland County General Obligation
Tax Notes, Series 1978, the original of which is on file in my office.
IN WITNESS WHEREOF, I have hereunto affixed my official signature this
day of , A.D., 1978.
Oakland County Clerk
ACKNOWLEDGMENT OF DESIGNATION
The undersigned, the Treasurer of the County of Oakland, Michigan, hereby
acknowledges and says that on , 1978, the Oakland County
Delinquent Tax Revolving Fund was designated by the County Treasurer as the Oakland
County 100% Tax Payment Fund, pursuant to Section 87b of Act 206 of the Michigan
Public Acts of 1893, as amended.
Oakland County Treasurer
(FORM OF NOTE)
UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF OAKLAND
Number $5,000
GENERAL OBLIGATION TAX NOTE, SERIES 1978
KNOW ALL MEN BY THESE PRESENTS, that the County of Oakland,
Michigan, hereby acknowledges itself indebted and for value received, promises to pay
to the bearer hereof the sum of
FIVE THOUSAND DOLLARS
on the first day of , A.D. 19 , together with interest thereon from
the date hereof until paid, at the rate of per centum
( %) per annum, payable on 1, 1978, and thereafter
semi-annually on the first days of and in each year.
Both principal and interest are payable in lawful money of the United States of America
at
, upon presentation and surrender of this
note and the coupons attached hereto as they severally mature.
This note is one of a series of notes of like date and tenor, except as to
maturity , numbered consecutively in the direct order
of their maturities from I to , both inclusive, aggregating the principal sum
of Dollars ($ ), issued
under and pursuant to and in full conformity with the Constitution and Statutes of the
State of Michigan and especially Act No. 206 of the Michigan Public Acts of 1893, as
amended. The proceeds of this series of notes will be used to make payments to all
taxing units in the County for the 1977 real property taxes returned to the County
Treasurer as delinquent on March 1, 1978.
For the payment of the principal and interest on these notes, there is hereby
pledged all of the collections of the delinquent real property taxes due and payable to
taxing units in Oakland County, including the County of Oakland, for the year 1977,
which were outstanding and uncollected on March 1, 1978, together with all interest
thereon, which amounts will be deposited in the County's 100% Tax Payment Fund. The
primary obligation to pay to the County the amount of such delinquent taxes and the
interest thereon (except those amounts due as county tax) rests with the respective
local taxing units. In addition thereto, the full faith, credit and resources of the County
of Oakland are hereby irrevocably pledged for the prompt payment of said principal and
interest at maturity.
Notes of this series are not subject to redemption prior to maturity.
It is hereby certified, recited and declared that all acts, conditions and
things required to exist, happen and be performed precedent to and in the issuance of
the notes of this series, existed, have happened and have been performed in due time,
form and manner as required by the Constitution and Statutes of the State of Michigan.
IN WITNESS WHEREOF, the County of Oakland, Michigan, has caused this
note to be signed in its name by its Treasurer and its corporate seal to be affixed
hereto, and has caused the annexed interest coupons to be executed with the facsimile
signature of its Treasurer, all as of the first day of April, 1978.
COUNTY OF OAKLAND
By
Treasurer
(SEAL)
(COUPON)
Number $5,000
On the first day of , A.D., 19 , The County of Oakland,
Michigan, will pay to the bearer hereof the sum shown hereon in lawful money of the
United States of America at the
, same being the interest due on that day on its
General Obligation Tax Note, Series 1978, bearing the number shown hereon. This
coupon is payable from certain delinquent tax payments and other amounts to be
received by the County of Oakland and deposited in the Oakland County 100% Tax
Payment Fund, as set forth in the notes to which this coupon pertains.
C. Hugh Dohany (Facsimile)
Oakland County Treasurer
OFFICIAL NOTICE OF SALE
COUNTY OF OAKLAND
STATE OF MICHIGAN
GENERAL OBLIGATION TAX NOTES, SERIES 1978
SEALED BIDS for the purchase of General Obligation Tax Notes, Series 1978, of the
County of Oakland, Michigan, of the par value of $ will be received
by the undersigned at the office of the County Treasurer, Oakland County Building,
1200 N. Telegraph Road, Pontiac, Michigan, until Michigan Time,
on , 1978, at which time they will be publicly
opened and read. Sealed bids will also be received, in the alternative, on the same date
and until the same time, by an agent of the undersigned at the office of the Municipal
Advisory Council of Michigan, 2135 First National Building, Detroit, Michigan 48226,
where they will simultaneously be publicly opened. Bids opened at Pontiac, Michigan,
will be read first, followed by the alternate location. Bidders may choose either
location to present bids and good faith checks, but not at both locations. The notes will
be awarded to the successful bidder at a proceeding conducted by the County Treasurer
approximately thirty minutes after all bids have been opened on that date.
NOTE DETAILS: The notes will be coupon notes of the denomination of $5,000 each,
will bear interest from their date payable on November 1, 1978, and semi-annually
thereafter, will be dated April 1, 1978, will be numbered in direct order of maturity
from 1 to , inclusive, and will mature serially on May 1 ir years and amounts
as follows:
Year Amount
1979
1980
1981 $
PRIOR REDEMPTION: The notes shall not be subject to redemption prior to maturity.
INTEREST RATE AND BIDDING DETAILS: The notes will bear interest from their date
at a rate or rates specified by the successful bidder, not exceeding eight and three-
quarters per cent (8 3/4%) per annum, expressed in multiples of 1/8 or 1/20 of 1%, or
any combination thereof. Interest on the notes of any maturity shall be at one rate
only, and the difference between the highest and lowest rate of interest bid shall not
exceed one per cent (1%). No rate of interest on any maturity shall be lower than that
on an earlier maturity.
PAYING AGENT: Both principal and interest will be payable at a bank or trust
company located in the State of Michigan, qualified to act as paying agent under the
statutes of the State of Michigan or of the United States of America, to be designated
by the original purchaser of the notes, who may also designate a co-paying agent, which
may be located outside of Michigan, qualified to act as paying agent under the law of
the State in which located or of the United States of America, both of which shall be
subject to the approval of the County Treasurer. The designation of paying agent or
paying agents shall be made by letter or telegram to the undersigned within 24 hours
after the time of sale. In the event no paying agent is designated within the time herein
provided, or in the event that the paying agent designated is not qualified under the
statutes of this State or of the United States of America, or is not approved by the
Treasurer, the Treasurer shall appoint the paying agent or paying agents after cHscussion
with the original purchaser.
PURPOSE AND SECURITY: The notes are issued for the purpose of establishing the
County's 100% Tax Payment Fund for the 1977 tax years. The notes are secured by the
delinquent real property taxes which became due and payable to the County of Oakland
for the year 1977 on or before March 1, 1978, and all such taxes together with all
interest thereon unpaid on that date are pledged to the prompt payment of the principal
of and interest on the notes. All governmental units in the County which receive
payments from the fund have a primary obligation to pay to the County the amount of
such payments with interest thereon at the highest rate borne by the notes being issued,
should the taxes pledged be uncollectible for any reason. The notes are also the general
obligation of the County, and for the prompt payment of the principal of the notes and
the interest thereon, when due, the County shall impose a general ad valorem tax,
without limitation as to rate or amount, on all taxable Property in the County to pay
such principal and interest.
AWARD OF THE NOTES: For the purpose of awarding the notes, the interest cost of
each bid will be computed by determining, at the rate or rates specified therein, the
total dollar amount of all interest on the notes from , 1978 to
their maturity and deducting therefrom any premium. The notes will be awarded to the
bidder whose bid on the above computation produces the lowest interest to the County.
No proposal for less than par, nor less than all the notes, will be considered. Each
bidder, for the convenience of the County, shall state in his bid the net interest cost to
the County, computed in the manner above specified.
GOOD FAITH: A certified or cashier's check in the amount of $ , drawn
upon an incorporated bank or trust company and payable to the order of the Treasurer
of the County of Oakland, must accompany each bid as a guarantee of good faith on the
part of the bidder, to be forfeited as liquidated damages if such bid is accepted and the
bidder fails to take up and pay for the notes. No interest will be allowed on good faith
deposits. The good faith check of the winning bidder will be promptly cashed, and the
amount received therefor will be credited against the purchase price as of the date of
delivery. Checks of unsuccessful bidders will be promptly returned to each bidder's
representative or by registered mail. In the event the notes cannot be issued or
delivered for any reason, the County will pay back -,;o the successful bidder the principal
amount of the good faith check without interest.
LEGAL OPINION: Bids shall be conditioned upon the unqualified approving opinion of
Dickinson, Wright, McKean, Cudlip & Moon, attorneys of Detroit, Michigan, approving
the legality of the notes, copies of which will be printed on the reverse side of each
note, and the original of the opinion will be delivered without expense to the purchaser
of the notes at the delivery thereof.
DELIVERY OF NOTES: The County will furnish notes ready for execution at its
expense at Detroit, Michigan
The usual documents, including a certificate that no litigation is pending affecting the
issuance of the notes, will be delivered at the time of delivery of the notes. If the notes
are not tendered for delivery by twelve o'clock noon, Michigan Time, on the 45th day
following the date of sale, or the first business day thereafter if said 45th day is not a
business day, the successful bidder may on that day, or any time thereafter until
delivery of the notes, withdraw his proposal by serving notice of cancellation on the
undersigned, in writing, in which event the County shall promptly return the good faith
deposit. Payment for the notes shall be made in Federal Reserve Funds. Accrued
interest to the date of delivery of the notes shall be paid by the purchaser at the time
of delivery.
CUSIP NUMBERS: Cusip numbers have been applied for and will be printed on the notes
at the County's expense. The printing of incorrect Cusip numbers or the failure to print
the Cusip numbers on the notes shall not constitute cause for the purchaser to refuse
delivery of the notes.
ADDITIONAL INFORMATION: Further information may be obtained from the Oakland
County Treasurer at the address specified above..
THE RIGHT IS RESERVED TO REJECT ANY OR ALL BIDS.
ENVELOPES: Envelopes containing the bids should be plainly marked "Proposal for
General Obligation Tax Notes."
C. Hugh Dohany
Oakland County Treasurer
APPROVED:
STATE OF MICHIGAN
MUNICIPAL FINANCE COMMISSION
#8315 February 2, 1978
Moved by Kasper supported by Fortino the resolution be adopted.
AYES: Simson, Wilcox, Aaron, Daly, Doyon, Fortino, Gabler, Gorsline, Hoot,
Kasper, Kelly, Lanni, McConnell, McDonald, Moffitt, Montante, Moxley, Murphy, Olson,
Page, Perinoff, Pernick, Peterson. (23)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn. D. Allen, Clerk of the County of Oakland and
having a seal, do hereby certify that I have compared the annexed copy of
Miscellaneous Resolution #8315 adopted by the Oakland County Board of
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Commissioners at their meeting held on February 2, 1978
with the original record thereof now remaining in my
office, and that it is a true and correct transcript
therefrom, and of the whole thereof.
In Testimony Whereof, I have hereunto set my hand and
affixed the seal of said County at Pontiac, Michigan
2nd February this of....... ......
Lynn D. Allen.......... ..... ----Clerk
By.. ......... ..... ..... ----Deputy Clerk